Shareholders May Find It Hard To Justify A Pay Rise For Accel Entertainment, Inc.'s (NYSE:ACEL) CEO This Year

Key Insights

• Accel Entertainment to hold its Annual General Meeting on 6th of June
• CEO Andy Rubenstein's total compensation includes salary of US$935.6k
• The total compensation is similar to the average for the industry
• Over the past three years, Accel Entertainment's EPS grew by 0.8% and over the past three years, the total shareholder return was 2.1%

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CEO Andy Rubenstein has done a decent job of delivering relatively good performance at Accel Entertainment, Inc. (NYSE:ACEL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 6th of June. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Accel Entertainment

How Does Total Compensation For Andy Rubenstein Compare With Other Companies In The Industry?

At the time of writing, our data shows that Accel Entertainment, Inc. has a market capitalization of US$950m, and reported total annual CEO compensation of US$3.8m for the year to December 2024. We note that's a decrease of 35% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$936k.

In comparison with other companies in the American Hospitality industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.7m. So it looks like Accel Entertainment compensates Andy Rubenstein in line with the median for the industry. Furthermore, Andy Rubenstein directly owns US$45m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$936k	US$880k	25%
Other	US$2.9m	US$5.0m	75%
Total Compensation	US$3.8m	US$5.8m	100%

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. According to our research, Accel Entertainment has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Accel Entertainment, Inc.'s Growth

Earnings per share at Accel Entertainment, Inc. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is up 6.3%.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Accel Entertainment, Inc. Been A Good Investment?

With a total shareholder return of 2.1% over three years, Accel Entertainment, Inc. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Accel Entertainment that you should be aware of before investing.

Important note: Accel Entertainment is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.